Agenda item

To consider any additional items exceptionally agreed by the Mayor as Urgent Business in accordance with the powers vested in him by virtue of Section 100(B)(4)(b) of the Local Government Act 1972.

(This power should be exercised only in cases where there are genuinely special circumstances which require consideration of an item which has not previously been published on the Order of Business for the meeting.)

100% Business Rate Pilot Pool

Members are asked to consider the Business Rates Report which the Mayor has agreed should be considered as Urgent Business at this meeting.

The 100% Business Rate Pilot Pool was accepted as an item of urgent business – not having met the publication deadline – and was considered at the meeting as such, with the approval of the Mayor, in accordance with the Council’s constitutional rules and the powers vested in the Chair by virtue of Section 100(B)(4)(b) of the Local Government Act 1972 to agree matters of urgency being discussed by reason of special circumstances.  In this case the special circumstances were that the Council needed to respond to the Government in respect of the Business Rate Pool Pilot by 27th October 2017 which provided limited time to hold an extra meeting of Council.

Redditch Borough Council was currently in the GBSLEP’s business rate pool.  The Council received a total of 26.5% of business rate growth either through direct allocation or via the current pooling arrangements Councils with negative business growth could access ”safety net” payments.  There was also currently a Worcestershire LEP pool, though Redditch Borough Council, like Bromsgrove District and Malvern Hills District Councils, were not part of this pool.  There is also a WMCA pilot for 100% business rates growth, however, non-constituent members of the combined authority were not currently permitted to join this pool.

For the 100% Business Rate Pilot Pool to be successful in Worcestershire the County Council and all of the district local authorities in the County would need to agree to participate.  There was no guarantee that even if all local authorities agreed to take part the pool would be approved; this would be determined by the Government.  Whilst no specific requirements had been stipulated by the Government in terms of the distribution of Business Rates it was understood that for the bid to be successful there would have to be a financial benefit to the County greater than its current share of Business Rates.

During consideration of this item Councillor Juliet Brunner proposed an amendment to the wording of the proposed resolution for this item, which was seconded by Councillor Brandon Clayton.  This amendment read as follows:

“That the Council consider the information received to date on the potential opportunities to participate in a 100% Business Rate Pool Pilot covering Worcestershire and delegate the decision on the 2018/19 business Rate Pool arrangements to the Executive Director Finance and Resources in agreement with the Portfolio Holder for Finance, the Leader and the leader of the opposition.”

Prior to the vote on this amendment a further proposal was made for Councillor Swansborough to be consulted, alongside the other Members named in the resolution, as he was not represented by either party.  This proposal was not seconded.

On being put to the vote the proposed amendment was defeated.

RESOLVED that

the Council, having considered the information received to date on the potential opportunities to participate in a 100% Business Rate Pool Pilot covering Worcestershire, delegate the decision on the 2018/19 Business Rate Pool arrangements to the Executive Director Finance and Resources in agreement with the Portfolio Holder for Finance and the Leader.